The Minister for Lands and Natural Resources, Samuel Abu Jinapor, has dismissed calls for a ban on small-scale mining to address the adverse impact of illegal mining in the country.
He cited the economic impact of the exportation of gold as part of the reasons calls for a ban on mining cannot be granted. The Minister also noted that huge investments have been made by small-scale miners operating legally, who have provided jobs to many unemployed Ghanaians.
In an interview on JoyNews, he said, “Small-scale mining accounts for 40 percent of our gold output… our foreign exchange earning will deplete by 40 percent. If you allow the ban tomorrow it means that you will have to look at the consequences on the national economy, which will definitely be catastrophic.”
Ghana recorded a provisional trade surplus of $1.81 billion for the first half of 2024, driven largely by growth in gold and crude oil exports.
The value of gold exports increased by 46.4 percent to US$5.04 billion, driven by both volume and price increases, according to the Central Bank of Ghana’s Monetary Policy Report for July 2024.
Recent calls from the Trades Union Congress and several civil society groups have urged President Akufo-Addo to impose a ban on all illegal mining activities and declare a state of emergency in affected mining regions.
On Wednesday, September 11, Organised Labour issued a firm ultimatum, threatening a nationwide strike by the end of the month if the government fails to take decisive action against the escalating galamsey crisis.
At a media briefing in Accra, Mr. Jinapor acknowledged the intense public frustration and environmental damage caused by illegal mining. However, he cautioned that a state of emergency might exacerbate social and economic instability.
The Lands Minister assured that the government is committed to engaging with labour unions and civil society organizations to find effective solutions to the galamsey problem.
“Declaring a state of emergency, that is in the bosom of the president, but I find that being far-reaching, [being] a very draconian measure to take.
“So we will engage him and we will have this conversation, and I believe out of that, we maybe need to come up with some consensus that we can work with.”
According to him, banning small-scale mining will not guarantee a halt of operations by illegal miners.
Small-Scale mining’s role in Ghana’s economy
Ghana ranks among the top two gold producers in Africa. Research from 2021 shows that over 35% of the country’s gold output comes from artisanal and small-scale miners, supporting the livelihoods of an estimated 4.5 million Ghanaians—roughly 12% of the population. Small-scale mining also accounts for more than 60% of the mining sector’s labor force.
Despite the sector’s economic contribution, environmentalists and health professionals have raised alarms about the environmental degradation caused by illegal mining, also known as galamsey.
Rivers such as the Bonsa in the Western Region and the Pra in the Ashanti Region have suffered severe pollution due to toxic chemicals used in mining activities. Forest reserves, including the Tano Nimiri in the Western North Region and the Draw River in the Western Region, have also been heavily impacted.
History of Small-Scale Mining Regulation
Small-scale mining was legitimized through the Small-Scale Mining Act (PNDCL 218) and later incorporated into the current Minerals and Mining Act, 2006 (Act 703). The law requires prospective miners to apply for a license to mine up to 25 acres of land. It also reserves small-scale mining for Ghanaians, aiming to formalize the sector and curb illegal activities.
Ghana’s battle with galamsey has been ongoing for years, with several interventions introduced to address the issue, including military operations, temporary bans, dialogues, and community mining initiatives.
In 2017, President Nana Akufo-Addo’s administration imposed a nationwide ban on small-scale mining, which lasted until 2019. During that period, the government launched Operation Vanguard, a military initiative that aimed to root out illegal mining activities. Hundreds of arrests were made, and mining equipment was seized.
By December 2018, around 1,350 miners had been vetted, and about 900 licenses were issued. In 2019, the ban was lifted, with small-scale miners contributing 2.1 million ounces of gold, accounting for 43.1% of total national production that year.
For small-scale mining companies to operate, they must secure permits from the EPA, Minerals Commission, and Water Resource Commission, in addition to having tax identification numbers.